Closed in NY at $1.5854 after rate had surprised many as its recovery rally extended to $1.5876, the move aided as it tracked euro-dollar’s extended rise and the cross met strong headwind sell interest around stg0.8585/90 (one UK clearer putting out a sell rec at this level, looking for stg0.8300). Rate marked lows at $1.5845 into opening Asian trade before frsh demand emerged to lift rate back to retest Thursday’s high, touching $1.5875 before faltering. Rate drifted off to $1.5856 before fresh demand emerged into the Asian afternoon, taking the rate on to an extended high of $1.5878, settling around $1.5870 into Europe. Euro-sterling had seen pullback lows of stg0.8555 in NY, after end month European sovereign buys had taken rate back to the stg0.8585/90 area, but failure to break below stg0.8540 attracted demand to take the cross back to stg0.8565 ahead of the close. This recovery extended through Asia, finding headwind supply in the area between stg0.8580/90 though retained a firm feel into Europe. Cable resisatance seen into $1.5885/90, stops on break of $1.5900. Support $1.5855/45, stops on break of $1.5840. UK mfg PMI at 0928GMT, but US jobs later overshadow.
EasyForexNews Research Team